EDI Web 3.

0 More Tools, Less Cost…

Mark Pattison, Founder and CEO

October 2008
16 Mile has the Solution
What we do:
•Revolutionize EDI with a SaaS solution that
dramatically reduces cost by 40%.

•In today’s economy, everyone is looking to reduce

the bottom line. No other company can offer
dramatic cost savings while increasing their EDI
efficiency.

•16 Mile will create a cash cow over time like

Comcast or any of phone companies.

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What does this mean?
• A company generating $25 Million in Revenue
is likely to pay $25,000 EDI cost.
 16 Mile OV can easily save a company at least $7,000 or more!

• A company generating $1 Billion in Revenue is

likely to pay $25 Million in EDI cost.
 16 Mile OV can easily save a company at least $7 Million or
more!!
•

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Market Opportunity
Worldwide Supplier Relationship Market
(millions of dollars)
2,500.00

2,000.00

1,500.00

1,000.00

500.00

0.00
2006 2007 2008 2009 2010 2011

Source: ARC Advisory Group 2007

• The supplier relationship market (SRM) is expected to grow at a

compounded rate of 8.2% — from $1.6 billion in 2006 to $2.35 billion
in 2011.
• Today, 35% of small- to medium-size companies — those earning
annual revenues of $30 million to $1 billion — still use manual
processes for communicating with their suppliers.

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Market Summary Breakdown
No incentive for current competition to change. They all charge based on
transactions and would have to restructure their entire business to
adapt which would mean massive revenue loss.
• Of 309,909 U.S.-based businesses, 79,804 fall in in our target market —
companies with $30 million to $1 billion in annual revenue.
• We only need 2,200 companies as customers (2.75%) to reach our annual
revenue goals.

A B

Key:
A = annual revenue
B = number of U-S.-
based companies with
that revenue

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Supply Chain Order Process Today
The competition charges for every message/
Kilobyte that is sent. This is very costly.

$
Vendor 1

$
$
$
$
$
$
$
$
$
$
$$ $$ $$$ $ $$ $
$ $ $$ $$$ $$ $ $

Retailer Bank
$$
Manufacturer $ $$
Tr
an
sfae $$
crti
ofn $$
PCO
haD $$
ragt
eas

Logistics
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16 Mile SaaS Approach
We charge a seat license with bundled tools to
process orders.

Chinese Factory

Nordstrom Bank/Factor
Bob’s Shoe’s
No
DTar
taan
Msao
cvt
eison
FrC
ehea
r ge
s

Logistics
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16 Mile OV (OV = order visibility)

Our inaugural product, 16 Mile OV, is a hosted solution

that differs from its competitors if five important ways:
• New Pricing Model: Results in 50-100% lower EDI costs, plus no
charge for transactions to and from suppliers sent via AS2 and
FTP. Others charge by kilobytes for each transaction.
• Multi-dimensional Order Visibility: Delivers real-time, multi-
dimensional order information across supply networks, along
with EDI (electronic data interchange). Others only offer EDI.
• New Technology: Based on new database structure that
integrates data from Oracle, VANs and other back-end systems,
results in better end-to-end management of supply and demand.
• Built-in Tools: Unites EDI and order visibility with tools and
reporting capabilities for vendor performance, event alerts,
inventory tracking, response management, scanned-based
trading, and more.
• Mobility Enabled: 16 Mile OV can “mobile enable data” extra to
any Smartphone or PDA.

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16 Mile vs. the Competition

Gray boxes = capabilities

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Milestones
PRODUCT MILESTONES
Beta testing completed January 2007 (with Starbucks)
Product launch April 2008
SALES MILESTONES
CLOSED DEALS: Robins and Meyer, Olympia Sports, Carbon 5, Inmoda, Mello
Sales, Staub USA, The Pattison Group (translating data between them and
retail giants Adidas, Columbia Sportswear, KB Toys, Nike, Reebok, Sam’s
Club, Starbucks, Target, Wal-Mart, PetSmart, Dillards & more)
PENDING PROPOSALS: PetFood.com, Safeway, Kassatex, Venture Products,
Red Wing Shoes, Capacity, K&M International, plus 20 others
IN DISCUSSIONS: Nordstrom, Starbucks Coffee, Restoration Hardware,
Schenker Logistics, True Religion Jeans, Baden Sports, Car Toys
SALES TEAM: Hired supply chain experts from key competitor, Houston-
based Dicentral.
OTHER MILESTONES
LEGAL: Perkins Coie agreed to provide legal representation as part as its
“Emerging Company” program.
PATENTS: 1 process and 1 technology patent pending for warranty claims
facilitation.

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Financial Summary
GOAL: Reach 2.75% of our target market for success

Detailed revenue model available upon request

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Experienced Team
Founder has experienced supply chain issues first-hand:

• Founded 13-year-old branded • Co-founder, 2000

merchandise and import co.
• 1,000s of transactions, 100s of
customers
• 10-year Preferred Vendor of
Starbucks Coffee
• Manufacturer of all Starbucks’
outdoor umbrellas and bases
for North America, Latin
America, and Asia
• Makers of coffee table games
• 700 retail locations, seven
countries
• Family Fun “Toy of the Year”
Award 2002 and 2003
• Angel and VC funding
• Acquired December 2006

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Board of Advisors

• DEAN BAKER: Founder of Asset Recovery Specialist Inc. (

www.equipmentrecovery.com), asset management for banks
and leasing companies
• JOHN BAUGHN: Former partner of Accenture for business
and IT architecture, managing over $100 million dollars
• DIANE DEWBREY: CEO/President of Foundation Bank
• TIM DOWLING: VP Business Development McAfee
• TERRY DRAYTON: Co-Founder of Home Grocer, Count Me In,
Ramp Technology Group (www.RampGroup.com)
• DAN NORDSTORM: Former CEO of www.Nordstrom.com,
current CEO of Outdoor Research Company (
www.outdoorresearch.com)

Each advisory member has invested in 16 Mile Solutions.

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Funding Requirements
Prior Funding: $200,000 from founder
Series A Raise @ $1,500,000
$1,500,000 raised
Pre-money valuation: $2.5 million
Preferred shares .35
Series B Raise @ 2,500,000 Capital will allow us to:
Scale
Acquire working capital
Hire infrastructure (CTO, CFO, sales, marketing, support)
Launch channel partner program (domestic and international)
Continue public relations, search engine optimization, marketing
Extend features of 16 Mile OV
Complete development of Warranty Claims (currently
Visibility, Efficiency, in beta)
Lower Costs

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Where We’ll Be in 3-5 Five Years

• $70 million in revenue

• More than 2,000 clients worldwide
• Established international channel partnerships
• Next-generation status in retail compliance
• Recognized market leader in automating supply chain
collaboration, communication, and warranty claims
• Exiting — through acquisition by company with
compatible fit . . .

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EDI Web 3.0 More Tools, Less Cost…

Mark Pattison, Founder and CEO

712 N. Motor Place Suite 3
Seattle, WA 98103
206.675.1066
206.675.1099
Mark@16MileSolutions.com
www.16MileSolutions.com
Pricing Model
Seat Licenses Price Per
Software as a Service (SaaS) Number of Seats Seat

• Based on a seat license and 1 to 10 $ 5,000

11 to 19 $ 4,500
sliding scale
20 to 49 $ 2,700
• Transaction pricing (for VAN-EDI 50 -99 $ 2,100
management): $0.25/kb, 100 to 200 $ 1,700
decreasing if competition Annual seat license 20%

increases. Never below cost plus

30-40%. Setup (Per retailer) $250

Map to client environment by format

X.12 (Custom format)* $2,500

Chart prices derived from competitive analysis
XML $1,000
models between 16 Mile OV and other
solutions operating in the hosted EDI ASCII $500
market. Packet (In increments of 10 $1,000

Training $0

Support $0

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